Firm Value of Indonesian Energy Companies: The Effect of ESG Disclosure, Digital Transformation, and Capital Structure
DOI:
https://doi.org/10.58524/smartsoc.v6i3.1387Keywords:
ESG, digital transformation, capital structure, firm value, energy sectorAbstract
Indonesia’s energy sector faces substantial funding needs, continued dependence on fossil fuels, and increasing pressure to reduce emissions. This study examines the relationships of ESG disclosure, keyword-frequency-based digital transformation disclosure, and capital structure with firm value among 24 energy companies listed on the Indonesia Stock Exchange during 2021–2024, producing 96 firm-year observations. Fixed-effects panel regression using Stata 17 showed that ESG disclosure was negative but insignificant (β = −1.3022; p = 0.068), digital transformation disclosure was positive but insignificant (β = 0.2125; p = 0.268), and capital structure measured as total liabilities divided by total assets was positive and significant (β = 3.5883; p < 0.001). The model was jointly significant (F(3,69) = 9.66; p < 0.001). The total-liabilities-to-total-assets ratio had clearer statistical relevance to firm value than the disclosure-based measures, although this does not imply that a higher liabilities-to-assets ratio is always beneficial. Disclosure intensity may not reflect substantive implementation. Companies should manage liabilities prudently and strengthen credible, consistent, and outcome-oriented ESG and digital reporting. Future studies should use longer periods, relevant controls, and implementation-based measures.
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